We’ve gathered some expert advice on chargeback management as well as the latest research to guide your fraud and security management strategies in 2017.
Fraud protection company Kount offers key strategies to help businesses manage cashbacks and fraud in an e-book published recently. Gift card sales will reach $180 billion by 2019 and gift card fraud is growing as well according to LetsTalkPayments.com.
10% of UK consumers have been victimized by online fraud with more than $2.58 billion stolen in 2015 says a report from Comparethemarket.com. According to Financial Fraud Action UK, more than one million incidents of financial fraud – payment fraud, online banking and check fraud – occurred in the first six months of 2016 (compared to 660,000 during the first half of 2015).
ClearSale fraud experts highlight new fraud trends including same-day delivery, in-store pickup and post-EMV chip fraud. Mastercard and Visa are collaborating to make mobile and digital payments safer on both mobile pay platforms. Apparently, officials at Miami Beach City Hall were busy working on their tans while $3.6 million was stolen online, demonstrating that cybercrime does not just happen to e-commerce and online retail stores.
Kount’s Rule of Thumb on Chargebacks
In e-commerce, chargebacks are the silent killer of revenues, profits and, possibly the most damaging over the long-term, reputation. The firm that is beset by fraudulent transactions must scramble to undo damage, while the company that is ever vigilant about fraud screening has a number of weapons in the arsenal against cyber-chicanery.
In a recent eBook titled “What You Don’t Know About Chargebacks…Can Hurt You,” Kount, the e-commerce and fraud detection company, noted that fraud is the No. 1 reason behind chargebacks, driven by fraudulent transactions themselves, customers claiming fraud, and what is known as friendly fraud. The costs are staggering as fraud causes $100 billion in annual losses, and to put that in perspective, that tally is more than the GDP logged by more than 100 countries globally. Via pymnts.com
Gift Card Fraud: Part of a Growing Trillion-Dollar Global Epidemic
‘Tis the season for online shopping, and business is booming for the gift card sector. With the gift card industry expected to reach $160 billion by the year 2018, gift cards are only going to become more popular during the holiday season.
As gift cards become more popular with consumers and merchants, criminals also want a piece of the holiday pie. As criminals get savvier, they are finding new loopholes to exploit, and e-gift cards are increasingly becoming a lucrative way to commit fraud and to launder money. Via letstalkpayments.com
4.5 million people forced to cancel credit & debit cards in the past year due to online fraud
One in ten people have been the victim of a cyber-attack on their credit or debit card in the last year, according to new research from comparethemarket.com. In 62% of cases, money was successfully removed from the account with an average of £475 ($583) stolen. At a national level this equates to 4.5 million credit or debit cards cancelled in the last twelve months with more than £2.1 billion ($2.58 billion) stolen in total*.
Of those unlucky enough to have been defrauded in the last year, nearly a third (31%) said the hack occurred when making a payment online, while one in ten (10%) had their card duplicated at an ATM and a small proportion (8%) had even been hacked when making a contactless payment. Via fintech.finance
Fraud Trends 2017: What to Watch Out For
Fraud detection is a never-ending learning process for experts and e-commerce merchants. The moment we figure out a fraudster’s attack pattern, we can slow down his fraud attempts ─ until he realizes his approach no longer works. Then he tries something different and often more complex, and the detection-and-prevention cycle turns again. In addition to stopping millions of different fraud patterns in 2016, ClearSale collected and studied those patterns to understand how they’ll evolve. Based on that knowledge, the ClearSale fraud analytics team expects to see more of these types of emerging and growing fraud in 2017.
In 2017, watch for these types of online retail fraud. Most fraud is much more complex than those basic types. Based on our analysis of 2016 trends, we expect more of these newer fraud patterns in the year ahead. Via risnews.edgl.com
Bank fraud: 2016 review and 2017 predictions
According to official figures released by Financial Fraud Action UK, more than 1 million incidents of financial fraud – payment fraud, online banking and check fraud – occurred in the first six months of 2016 (compared to 660,000 during the first half of 2015).
Throughout 2016, SWIFT officials have grappled with a series of cyber attacks. In February, attackers used SWIFT codes to break into the account of the Bangladesh central bank and send fake payment orders to the Federal Reserve Bank of New York, leading to the theft of $100 million. Some of the money has been tracked down and retrieved, but $81 million is still missing.
ATM fraud is on the rise, with over $40 million accounted theft. Throughout the world, ATM fraud has grown from a virus to a full-fledged epidemic. In the past 12 months, we have seen the trust and convenience of the ATM channel under attack from both new and old techniques. Via bobsguide.com
Mastercard, Visa work to make mobile pay safer
Financial institutions Mastercard and Visa have banded together to make mobile and digital payments safer on either of their mobile pay platforms in an effort for wide-spread adoption.
While mobile pay is starting to flourish, fraud is still a major point of concern for consumers. Visa and Mastercard, both of which have their own mobile pay platforms, will now allow requested tokenized credentials from each other to be used in their respective platforms instead of credit card information. Via mobilecommercedaily.com
Miami Beach residents and elected officials shocked over stolen $3.6 million
It appears that whoever was minding the store at Miami Beach City Hall didn’t notice that someone was stealing money from one of the city’s general use bank accounts. On Wednesday, it was revealed that someone had looted the account of $3.6 million.
If the average taxpayer can balance his or her bank account at the end of the month, then why can’t City Hall? Via miamiherald.com
LET’S CONNECT